Dreamhome Now, Used To Be A Toxic Asset! Buying A REO?

By
Real Estate Agent with Allison James Estates & Homes 01079287

Ah, the new wave of how to buy a house in the sea of toxic assets. Also known as someones gonna be Dreamhome. If you have yet to venture into purchasing an REO aka Bank Owned, this is what "as is" IS! You make the offer it gets accepted by the Bank aka toxic asset servicer.

 

But before you get a fully executed contract in hand the buyer will have to sign 30 pages written by a lawyer (to cover the banks a$$) and this document will basically tell you they are selling "as is" with no repairs! OK the good news is you will hire a home inspector to find out exactly what repairs will need to be done and the current state of the home.

 

The out come of the home inspection, always have one, will show what needs to be done to bring the house up to standard. When the Request for Repairs is submitted please do not be surprised when they hide behind, we will only complete repairs required by the buyers lender. And who notes these repairs? The appraiser, really he is not a home inspector and can only see the obvious. A clear termite, no worries the List agent had the termite inspection done when he took the listing. And the repairs have been completed, or have they? After the Home Inspection I will usually recommend the buyers have a second opinion, termite inspection done. This has saved my buyers thousands in repairs.

 

The second termite companies opinion may not get the work because the first termite company has guaranteed their work. Great go back and recheck here is a report that documents you missed a few things and the spot treatment has not done the job! This has been great for my buyers. Not to put anyone down but after the bubble and downsizing some not all Termite Companies have elected to over see a few things in order to get contracts with listing agents who have toxic assets to disburse.

 

Human nature? I don't care what you call it, it is wrong and not all termite companies are created equal. The war cry now is don't rely on seller contracted repairs, do the investigation, get a second opinion and make them be accountable. I work hard to be ethical, and complete my due diligence for my buyers and so should all agents.

 

 

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Realtor simple guideline to guesstimate a Homes values! Comparing apples with oranges? How to set values for embellishments? Do you think the old adage of Value equals Location, Location, Location, is true? Views, Pools, special interest additions can add desirability, and then Granite Counters, Travertine flooring, condition, square footage and any embellishments, upgrades, updates you can add to a property is worth 60-70% of the cost. This value will also be depreciated over time. Example would you consider if a twenty year old solid oak cabinette's
value even in good condition is equal in value to cabinets in the newer current color, or are they? Objective would be desirability.

Location is the basis for value. Like Homes within a one mile radius share values, and can be evaluated by sales per square foot within the last 3+ months. Pulses

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Tere Rice

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